Taking everything into account, DBX scores 6 out of 10 in our fundamental rating. DBX was compared to 278 industry peers in the Software industry. While DBX has a great profitability rating, there are quite some concerns on its financial health. DBX may be a bit undervalued, certainly considering the very reasonable score on growth

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

DBX had positive earnings in the past year.
DBX had a positive operating cash flow in the past year.
Of the past 5 years DBX 4 years were profitable.
In the past 5 years DBX always reported a positive cash flow from operatings.

1.2 Ratios

DBX's Return On Assets of 17.97% is amongst the best of the industry. DBX outperforms 94.24% of its industry peers.
DBX has a Return On Invested Capital of 59.34%. This is amongst the best in the industry. DBX outperforms 99.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DBX is significantly above the industry average of 10.76%.
The 3 year average ROIC (17.97%) for DBX is below the current ROIC(59.34%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	17.97%
ROE	N/A
ROIC	59.34%

ROA(3y)15.53%

ROA(5y)9.34%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)17.97%

ROIC(5y)15.1%

1.3 Margins

With an excellent Profit Margin value of 19.87%, DBX belongs to the best of the industry, outperforming 83.09% of the companies in the same industry.
In the last couple of years the Profit Margin of DBX has grown nicely.
Looking at the Operating Margin, with a value of 24.57%, DBX belongs to the top of the industry, outperforming 89.93% of the companies in the same industry.
DBX's Operating Margin has improved in the last couple of years.
The Gross Margin of DBX (80.66%) is better than 82.01% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	24.57%
PM (TTM)	19.87%
GM	80.66%

OM growth 3Y10.3%

OM growth 5YN/A

PM growth 3Y4.48%

PM growth 5YN/A

GM growth 3Y1.29%

GM growth 5Y1.86%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DBX is creating value.
The number of shares outstanding for DBX has been reduced compared to 1 year ago.
The number of shares outstanding for DBX has been reduced compared to 5 years ago.
The debt/assets ratio for DBX is higher compared to a year ago.

2.2 Solvency

DBX has an Altman-Z score of 0.42. This is a bad value and indicates that DBX is not financially healthy and even has some risk of bankruptcy.
DBX has a Altman-Z score of 0.42. This is in the lower half of the industry: DBX underperforms 69.06% of its industry peers.
DBX has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as DBX would need 3.10 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.10, DBX is doing good in the industry, outperforming 63.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	3.1
Altman-Z	0.42

ROIC/WACC5.95

WACC9.97%

2.3 Liquidity

A Current Ratio of 0.57 indicates that DBX may have some problems paying its short term obligations.
DBX has a worse Current ratio (0.57) than 92.45% of its industry peers.
DBX has a Quick Ratio of 0.57. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.57, DBX is not doing good in the industry: 91.73% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.57
Quick Ratio	0.57

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

DBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.32%, which is quite impressive.
DBX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.64% yearly.
DBX shows a decrease in Revenue. In the last year, the revenue decreased by -0.44%.
DBX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.93% yearly.

EPS 1Y (TTM)26.32%

EPS 3Y17.94%

EPS 5Y38.64%

EPS Q2Q%23.33%

Revenue 1Y (TTM)-0.44%

Revenue growth 3Y5.7%

Revenue growth 5Y8.93%

Sales Q2Q%-0.69%

3.2 Future

DBX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.92% yearly.
DBX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.17% yearly.

EPS Next Y13.95%

EPS Next 2Y10.56%

EPS Next 3Y9.38%

EPS Next 5Y2.92%

Revenue Next Year-1.17%

Revenue Next 2Y-0.9%

Revenue Next 3Y-0.81%

Revenue Next 5Y-1.17%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.11 indicates a reasonable valuation of DBX.
Based on the Price/Earnings ratio, DBX is valued cheaper than 88.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. DBX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.55, the valuation of DBX can be described as very reasonable.
89.93% of the companies in the same industry are more expensive than DBX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.83. DBX is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	9.11
Fwd PE	8.55

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 86.69% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 95.32% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	7.41
EV/EBITDA	11.06

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DBX has an outstanding profitability rating, which may justify a higher PE ratio.